When BlackBerry announced its Q2 2017 results this past September, CEO John Chen said at the time that the company was reaching an “inflection point” with its strategy, noting that the company’s software pivot was “taking hold.”

If Q3 2017 was to be that inflection point, then BlackBerry still has some way to go before software sales make for the company’s shattered hardware division.

On Tuesday, BlackBerry announced its Q3 2017 fiscal results, reporting a $114 million net loss on $289 million in revenue. One year ago, the company reported a net loss of $89 million on revenue of $548 million.

Software revenue for the quarter was $160 million, accounting for 55 percent of the company’s total Q3 2017 revenue. Mobility solutions, which includes BlackBerry’s shrinking hardware division, accounted for 23 percent of revenue. BlackBerry did not disclose device sales. The good news, however, is that software sales have increased on both a year over year and quarter over quarter basis. Given those numbers, the company is likely to return to profitability sometime during its 2018 fiscal year.

Also worrisome is the company’s dwindling war chest, which is down t0 $1.6 billion in cash and cash equivalents, down from the $2.5 billion the company had just last quarter.

“BlackBerry is now a software company and the market leader in mobile security,” said Chen “We achieved significant milestones in Q3, delivering the highest gross margin in the company’s history for the second consecutive quarter and continuing to transform our infrastructure and operations to support an enterprise software business.